Banned in 1833, debtors prisons are alive and well

8:14 PM,
Aug. 23, 2013

Written by

Darrell Shahan

Most people believe, having been outlawed in 1833, debtors prisons no longer exist in the United States. Until then, people could be imprisoned until they paid debts as low as 60 cents. Since the Great Recession, debtors prisons have returned to the United States. Most people will be shocked to learn, according to the Wall Street Journal, one-third of the states have laws allowing people to be arrested for not paying their bills.

Borrowers are being arrested for not paying auto loans, credit card debts and debts owed retailers and landlords. Businesses sell their uncollected accounts to ...